Retail leads low volume rally

Index & Sector performance 6/4/14

The Market:

Another very light volume trading day led by the NASDAQ and Russell 2000 while the S&P 500 climbed to a new closing high.

There were mixed results across the sectors but a stand out was the Retail (XRT) sector which closed up 0.76%.  Walgreen (WAG) finished up 4.19% to a new closing high on better than expected Q3 sales along with solid same-store-sales up 5.1%.  A more speculative name in retail also moving higher today was RadioShack (RSH) which closed up 8.63%.  For those looking for a speculative trade, RSH is a prime candidate in our opinion with stops either below yesterday’s low of $1.31 or, if you are willing to give it more room, below the 5/20/14 lows of $1.12.  Last price on RSH is $1.51.

In economic data today a weaker than expected ADP number and Trade Balance started things off on a sour note but the data got better including an ISM Non-Manufacturing PMI number that beat expectations just after the open which also correlated with the start of today’s rally to new highs.  The Fed’s Beige Book also struck some positive tones showing moderate growth expansion.

Tomorrow the G7 meetings continue and Unemployment claims are announced but traders will likely be focusing on the ECB meeting and any comments, news, or notes from Draghi.  After that focus will switch to Friday and the Jobs report.

Economic Calendar week of 6/2/14

Reporting EPS 6/5/14 Pre-Market:

Companies reporting EPS 6/5/14 pre-market

Analyst Comments:

Upgrades 6/4/14

Downgrades 6/4/14

Initiations 6/4/14

Price Target Changes 6/4/14